North Carolina Down Payment Support Systems

Online Payments - These programs will be the deposit Assistance System and also the Mortgage Credit Certificate.

Also you purchase a house and December 1, 2009 and if you meet the requirements for one of the plans, you can even be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the past three years. It is precisely the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction. An MCC “reduces your tax liability according to a percentage of the mortgage interest which you pay.

If you are eligible for the MCC, you'll be able to claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes. You can save up to .

You'll manage to combine this with the $8,000 tax credit if you do qualify for 2009, for the MCC. This might reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the purchase price of the house and your income you're purchasing. Household income means the “gross income of the mortgagor and every other man expected to reside in the residence who is 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Individuals $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Cost Limits New Home $220,000 Existing Home $210,000

The customer just needs to pay and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC program summarized above. Like the MCC application, it can be utilized in conjunction with all the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, however, cannot be applied together together with the MCC. This really is an either or situation.

House price limitations that apply in Orange, Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Persons $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Home $210,000